Key Insights
- •Grayscale has launched its spot Dogecoin ETF under the ticker symbol GDOG.
- •A Bloomberg senior ETF analyst predicted $12 million in trading volume for the ETF on its first day.
- •The price of DOGE saw a nearly 2% increase following the announcement of the first spot Dogecoin ETF launch.
As the broader cryptocurrency market continues its recovery, attention is turning to Dogecoin, the prominent meme coin. The launch of a Dogecoin ETF will be a significant factor in observing Dogecoin's price reaction to this development.
Grayscale, a crypto asset manager, has launched the first spot Dogecoin ETF today, trading under the ticker symbol GDOG. Highlighting this milestone, a Bloomberg analyst projected that the Grayscale Dogecoin Trust ETF could achieve $12 million in trading volume on its debut.
The price of DOGE experienced a rise of over 2% in anticipation of the launch of the first spot Dogecoin ETF. The question remains whether this ETF launch will be sufficient to trigger a sustained rally in its price.
Grayscale Dogecoin Trust ETF Launch Generates Excitement
In an official announcement on November 24, Grayscale Investments confirmed the launch of the first Dogecoin ETF in the United States under the 1933 Act. The investment objective of this trust is to offer investors exposure to Dogecoin, closely tracking its spot prices.
Grayscale's CEO, Peter Mintzberg, marked this significant event on X, emphasizing the firm's ongoing innovation within the cryptocurrency asset class.
The Grayscale Dogecoin Trust ETF has commenced trading on NYSE Arca under the ticker GDOG. The company anticipates substantial investor demand, given Dogecoin's extensive user base and its dedicated community.
Bloomberg Analyst Forecasts $12 Million in Debut Trading Volume
Eric Balchunas, a senior analyst at Bloomberg specializing in ETFs, has predicted that the Grayscale Dogecoin Trust ETF could generate $12 million in trading volume on its first day of trading.
Balchunas also noted that Grayscale has established a management fee of 0.35% for the spot Dogecoin ETF. However, this sponsor fee will be waived entirely for a period of three months, or until the ETF holds $1 billion in Dogecoin from its exchange listing date.
Eric Balchunas further indicated that the Grayscale Dogecoin Trust ETF will have a two-day window to attract investors, as the Bitwise Dogecoin ETF, under the ticker BWOW, is scheduled to begin trading on Wednesday.
As previously reported, a Dogecoin ETF by 21Shares has already secured approval for listing and trading on the Nasdaq exchange.
Will DOGE Price Reclaim Key Levels?
The price of DOGE has risen by almost 2% in the past 24 hours, with traders reacting positively to the news of the Grayscale spot Doge ETF launch.
At the time of reporting, the price was trading at $0.145, with a 24-hour low of $0.143 and a high of $0.148. Trading volume has increased by 15% over the last 24 hours, reaching $1.5 billion.
To regain upward momentum, the price needs to reclaim the 50-day moving average, which is currently at $0.184. Dogecoin is presently experiencing selling pressure, partly due to a "death cross" formation observed on the daily timeframe chart.
Data from Coinglass indicates mixed sentiment in the derivatives markets over the last few hours. The total DOGE futures open interest has increased by 0.50% to $1.43 billion in the past 4 hours.
Specifically, the 4-hour DOGE futures open interest on Binance and Bybit saw increases of 0.82% and 0.35%, respectively. Conversely, open interest on OKX experienced a drop of nearly 0.40%.